Board Monitor Hong Kong 2021 - Hang Seng top 50 companies added more new directors in 2020 than the year before, with more emphasis on gender ...
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CEO & Board Practice Board Monitor Hong Kong 2021 Hang Seng top 50 companies added more new directors in 2020 than the year before, with more emphasis on gender diversity and prior board experience.
About Board Monitor This report is part of Heidrick & Struggles’ long-standing study of trends in board composition in countries around the world. Produced by our CEO & Board Practice, these reports track and analyze trends in non-executive director appointments to the boards of the largest companies in Australia, Belgium, Brazil, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy, Mexico, the Netherlands, New Zealand, Norway, Portugal, Singapore, South Africa, Spain, Sweden, Switzerland, the United Arab Emirates, the United Kingdom, and the United States. Information about executives is gathered from publicly available sources, BoardEx, and a Heidrick & Struggles proprietary database. Thanks to the following Heidrick & Struggles colleagues for their contributions to this report: David Hui Rodney Ng Hong Kong Hong Kong
Heidrick & Struggles
Welcome to 4 New directors to help
navigate disruption
Board Monitor
Hong Kong 2021
5 Snapshot of
2020 findings
6 Looking
ahead
3Board Monitor Hong Kong 2021
New directors to help
navigate disruption
Board fundamentals—financial former CEOs or CFOs was 38%, down a bit on ensuring board members can support
oversight and good governance—were from 43% in 2019, though equal to 2018. sound and swift decision making. In
crucial in 2020 as companies navigated Hong Kong boards were, however, clearly addition, many boards took a hard look at
through a global pandemic, geopolitical seeking prior board experience: more than their cadence of refreshment, with an eye
uncertainties, and economic recovery. two-thirds, 69%, of the incoming directors toward changing the process to ensure
Many directors found themselves working had such experience, compared with 51% they will be able to add the new directors
more closely than ever with executive the prior year. And a quarter of the new they need, when they need them.1
teams to keep their companies afloat, and directors were women, a notable increase
working at a faster pace than ever before. from only 6% the previous year and closer
And boards were increasingly expected to to parity with Singapore, where a third
not only address topics as wide-ranging as of 2020’s new directors were women.
community responsibility, sustainability,
and diversity in their own composition,
New directors found themselves joining Hong Kong boards were clearly
boards dealing with myriad, unprecedented
but to do so publicly. Furthermore, seeking prior board experience:
challenges, which led to many boards
the necessary remote working and
reassessing how they worked, as entire more than two-thirds, 69%,
crisis management forced boards to
organizations were also doing. Although of the incoming directors had
operate differently—often outside their
traditional schedule and agenda.
Hong Kong’s companies were faced with such experience, compared
macro issues outside their direct control,
with 51% the prior year. And a
All of this, of course, affected how boards pandemic safety measures, including
thought about the new members they working from home and lockdowns, quarter of the new directors
added in 2020. In Hong Kong, the top 50 caused many businesses to reevaluate were women, a notable increase
Hang Seng–listed companies added 42 how they could and should operate going from only 6% the previous year.
new directors, 20% more than the prior forward. Many boards were faced with
year; companies in Singapore added an game-changing decisions. Some boards
even greater share of new directors, with a stepped even further back, to analyze 1 For more on new approaches to board refreshment,
see Alice Breeden, Theodore L. Dysart, and David Hui,
50% rise from 2019. The share of incoming what they—and only they—could do to “Building the foundation for better board refreshment,”
Hong Kong directors who were current or support their companies, with a focus Heidrick & Struggles, January 7, 2021, heidrick.com.
4Heidrick & Struggles
Snapshot of 2020 findings
New director Current and Current and
42
seats filled former CEOs former CFOs
29% 10%
58
Average age
Active/retired executives (%) Distribution of previous industry
experience, by industry (%)
Active: 67 Retired: 33
Business services Financial services Technology Other
Consumer Industrial
Experience (%)
Consumer 67 33
69 Previously served on boards
17 International Financial services 4 38 8 8 42
12 Financial risk/compliance Industrial 7 30 30 7 26
12 Digital or social media
Life sciences 50 50
10 Diversity and inclusion
Technology 33 33 33
7 Sustainability
Note: There were no new appointments on business services boards in 2020.
0 Cybersecurity Numbers may not sum to 100%, because of rounding.
Gender (%) Nationality (%)
Mainland Chinese 50
Hong Kong Chinese 19
Male Female
76 24
Macau Chinese 2
Other 29
5Board Monitor Hong Kong 2021
Looking ahead
Boards’ commitment to their own ethnic representation. We also expect We expect the directors
effectiveness is lasting. We expect boards to expand their lens on diversity
itself, to include nontraditional industry,
added this year, all in all, to be
boards to intensify their focus on their
role in supporting their organization’s functional, or regional experience in part of boards that are more
purpose, including continued commitment order to bring in new perspectives that diverse, more committed,
to having the right people on the will help companies maintain agility. and more agile than ever.
board. We see boards innovating their We expect the directors added this
refreshment processes, particularly, in year, all in all, to be part of boards that
many countries, with even stronger focus are more diverse, more committed,
on expanding gender and racial and and more agile than ever.
6CEO & Board Heidrick & Struggles’ CEO & Board Practice has been built on our
ability to execute top-level assignments and counsel CEOs and board
Practice members on the complex issues directly affecting their businesses.
We pride ourselves on being our clients’ most trusted advisor and
offer an integrated suite of services to help manage these challenges
and their leadership assets. This ranges from the acquisition of talent
through executive search to providing counsel in areas that include
succession planning, executive and board assessment, and board
effectiveness reviews.
Our CEO & Board Practice leverages our most accomplished search
and leadership consulting professionals globally who understand
the ever-transforming nature of leadership. This expertise, combined
with in-depth industry, sector, and regional knowledge; differentiated
research capabilities; and intellectual capital, enables us to provide
sound global coverage for our clients.
Leaders of Heidrick & Struggles’
CEO & Board Practice
Global Bonnie Gwin Jeffrey Sanders
New York New York
bgwin@heidrick.com jsanders@heidrick.com
Americas Lyndon A. Taylor
Chicago
ltaylor@heidrick.com
Europe and Africa Aysegul Aydin Stafford Bagot Kit Bingham
Istanbul Dublin London
aaydin@heidrick.com sbagot@heidrick.com kbingham@heidrick.com
Marie-Hélène De Coster Sylvain Dhenin Vladimir Kochukov
Benelux Paris Moscow
mhdecoster@heidrick.com sdhenin@heidrick.com vkochukov@heidrick.com
Roger Muys Veronique Parkin Tobias Petri
Amsterdam Johannesburg Copenhagen
rmuys@heidrick.com vparkin@heidrick.com tpetri@heidrick.com
Nicolas von Rosty Tuomo Salonen Luis Urbano
Munich Helsinki Madrid
nvonrosty@heidrick.com tsalonen@heidrick.com lurbano@heidrick.com
Flavio Zollo
Milan
fzollo@heidrick.com
Asia Pacific Alain Deniau David Hui Hnn Hui Hii
Dubai Hong Kong Singapore
and Middle East adeniau@heidrick.com dhui@heidrick.com hhhii@heidrick.com
Aya Iinuma Fergus Kiel Gauri Padmanabhan
Tokyo Sydney New Delhi
aiinuma@heidrick.com fkiel@heidrick.com gpadmanabhan@heidrick.com
Linda Zhang
Shanghai
lzhang@heidrick.com
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